If you want to invest in graphene you need to know this Canadian stock, analyst says

NanoXplore (NanoXplore Stock Quote, Chart, News, Analysts, Financials TSE:GRA) reported second-quarter fiscal 2026 results that were modestly below expectations on revenue but ahead on profitability, prompting Paradigm Capital analyst Marvin Wolff to lower his price target while maintaining a “Buy” rating.

Wolff cut his 12-month target to $4.60 from $8.15, reflecting the company’s decision to exit its previously contemplated $100-million active anode material initiative, but reiterated his positive view on the core graphene business.

Wolff supported management’s decision to exit the battery materials vertical, citing volatility in the global EV battery space. As a result, the analyst removed the battery business from his valuation, contributing to the lower target price

“NanoXplore is the largest global producer of low-cost, high-quality graphene,” Wolff said, pointing to the company’s strategy of using graphene as a performance enhancer across plastics, drilling fluids and spray insulation applications.

For Q2/F2026, NanoXplore posted revenue of $27.6-million, up from $23.4-million in Q1 but below Wolff’s $29.5-million forecast. Adjusted EBITDA came in at $0.2-million, ahead of his -$1.7-million estimate and an improvement from -$1.4-million in the prior quarter. EPS was a loss of $0.02, compared with his -$0.04 projection.

Gross margin improved to 23.3% from 18.9% in Q1, driven by stronger graphene and SMC volumes. Wolff said he expects margins to continue improving as graphene sales accelerate and represent a larger share of revenue.

The company’s Tribograf graphene-enhanced drilling fluid additive is gaining traction with customers of Chevron Phillips Chemical, with potential supply mandate volumes expected in the coming months. NanoXplore is also commissioning a 500–1,000-tonne-per-annum dry graphene module at its Montreal facility by April, which can be replicated as demand increases.

Operationally, NanoXplore secured a mandate to supply Club Car with graphene-enhanced polypropylene body components, with production underway at its Statesville, North Carolina, plant and an initial annual revenue estimate of $15-million. The company also won a Volvo Truck contract valued at $9–$10-million per year.

Wolff supported management’s decision to exit the battery materials vertical, citing volatility in the global EV battery space. As a result, the analyst removed the battery business from his valuation, contributing to the lower target price.

NanoXplore ended the quarter with $30.2-million in cash, $13.9-million in debt and total liquidity of $40.1-million. Management guided to fiscal 2026 revenue of $115-million to $120-million; Wolff is modeling $119.7-million.

He expects NanoXplore to generate $1.0-million in Adjusted EBITDA on $119.7-million in revenue in fiscal 2026, improving to $12.3-million in Adjusted EBITDA on $145.0-million in revenue in fiscal 2027.

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